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Hamster business model

2011-07-22 18:16:46.658408+00 by Dan Lyke 2 comments

Dave Winer on Dropbox and the "hamster business model". Via Upon 2020.

Remember, if you're not paying what it costs to offer the service, you are not the customer, you are the product.

[ related topics: Interactive Drama Dave Winer ]

comments in ascending chronological order (reverse):

#Comment Re: made: 2011-07-23 14:36:19.028782+00 by: other_todd

Dropbox is a wonderful service, and it set off my "now exactly how is this going to be profitable?" filter from day one. Which is why I use it strictly as a transfer medium, and have never left a file in it for longer than an hour or two.

Twitter is also a wonderful service which has always set off my "How do they stay in business?" alarm. I have never yet answered that question, and I'm still waiting, quite a bit later, to find out how bad it's going to be when the shoe drops.

Call me a pessimist if you will; I prefer to think of it as hewing to the steady and sound principle known as "follow the money."

#Comment Re: made: 2011-07-24 13:34:22.126511+00 by: Dan Lyke

I'm betting that Twitter has a revenue stream off of selling their tweets: Their users have generated enough value that other companies are attempting to mine that data for value. But I still don't necessarily see how it'll last forever.

But then I'm still seeing all of these people who seem to want to push their data elsewhere, and I just don't get it.